28-07-2014, 01:56 PM
A supply chain management
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Introduction
Project management is an intensive profession; it combines sales, purchase,
installation and commissioning as well as project management to fulfill the
requirements of a project. One of the most important departments for any corporation
is purchasing. More than 50 percent of budgets spend on purchasing products and/or
services in huge companies/projects. It is significant to know consequences of
purchasing functions and how all the functions are performing their jobs. The most
important function for any purchasing department is to select best supplier. The right
supplier provides right quality and services on time and at right price. Best supplier
also essential to decrease cost and to increase profit. Therefore it is necessary to select
the best supplier in order to get optimum benefits.
Problem Statement
To discuss and identify factors which influence on supplier selection. In other words
how customer can get optimum benefits from supplier.
1.2 Goal
To maximize customer benefits by selecting best supplier
To reduce risks involve in purchasing
To get the best quality with finest price and time saving
1.3 Procedure
Check on supplier performance for best quality
Six sigma strategy including DMAIC used for implementation of projects and
six themes to eliminate errors
Microsoft office system to handle challenges and complex situations of six
sigma projects 4
1.4 Disposition
Second chapter explains background of this report. It gives an overview of supply
chain management and detail information regarding goals and objectives of supply
chain management and link with purchasing. Furthermore old and new supply chain
approaches are discussed. Additionally a quick overview concerning requirements of
new supply chain management system is described. Third chapter is about purchasing
market research. It tells imperative characteristics of purchasing market. In forth
chapter supplier performance attributes, supplier performance measurement is
discussed for customer satisfaction. Chapter five has two parts, first part defined as
strategies to develop purchasing department and second is supplier quality process to
deal with supplier. Both parts are to get more benefits by selecting best supplier. Sixth
chapter is about six sigma and its six methods to eliminate errors, time saving, fast
procedures and getting more benefits from supplier. Chapter seven is expressed for
six sigma management to handle six sigma projects by using Microsoft office system.
Eighth chapter is sets out for general conclusion of this report and after writing down
all the findings and discussions some recommendations are made for purchaser to get
maximum benefits from supplier. Finally, ninth chapter provides all the references of
literatures used in this report and customer references. An interview was conducted on
purchasing department; the conclusion of this interview is also included.
1.5 Delimitation
In this analysis, we focus on buyer/purchaser/customer not on project management in
order to get clear picture of approaches to get maximum benefits from supplier. We
also narrowed to the focal relationship of buyer and supplier and did not study of
network of companies or supply chain. This is because there was not so much time to
do such an extensive study for the academic purpose
Importance and Objectives
This part describes the importance of supply chain management, in supply chain
management one of the most crucial part is the selection of right supplier. The right
supplier provides right quality and services on time, and at right price. Basically a
buyer’s motive varies from quality to cost. Now a day’s most of the firms give
importance to purchasing functions and how all the functions are performing their
responsibilities. Supply chain management is responsible for purchasing materials and
services and it is also responsible for more than the half money which company
receives as income from sales. More money is spent for purchasing of materials and
services than for all other expenses like wages, taxes, dividends and depreciation.
Goals backdrop
One of the most important aspects to achieve success is defining goal. Goal defining
is the foundation of success. Goals can be set as long-term, intermediate or short-term.
Goals are the shape of planning production and purpose of an organization and who
have to meet all activities. Goals also have a tendency to perform the objectives of
supply chain management. In each area, identifying short-term or long-term goals are
the most important part at work place because carefully developed goals can provide
the better control of the job. Goals are defined in different categories: work related
goals, problem solving goals and improvement goals. Major part of goals is concern
with production, marketing, research and development of departments.
4 Traditional and New Approaches
Basically, Supply Chain management is a consistent chain of developing management
of logistics. If we look at past, SCM systems were not focusing on innovative
approaches, these supply chains started on manufacturing and finished with the sale to
customer. Now, experts are paying more attention on all the operations related to
product manufacturing like supplier selection, production development, inventory
managing, scheduling demand, transportation and other activities. They are producing
more comprehensive solutions for supply chain management systems to provide
maximum benefits for the company.
To get maximum benefits, it is need to understand project, calculate and deal with
demand of customer effectively, improve customer services, and increase market
shares. In addition, these models need to support. For example, advanced planning,
scheduling for manufacturing, setting up demands for customers, and transportation
arrangement for distribution.
Traditional approach of a product delivering was manufacturing the products at once
according to demand then finishing goods and fill up warehouses. Later in 1960s,
both transportation and warehousing functions used to reduce inventory and to get
more benefits with the help of faster and reliable transportation. After that next
development stage was to improve logistics that included manufacturing,
procurement, and order management functions. It seems to be process-oriented,
integrated approach to procuring, producing, delivering products and services to
customers. It covers the management of materials, information, and funds flows.
Conclusion
The selection of suppliers to get optimum benefits is one of the most important
functions for an organization. Although many organizational purchases are viewed to
be simple and regular and require only the supervision of persist satisfaction with the
product’s attributes quality, delivery and price. This assessment is even more essential
now with different performed strategies for selection of supplier and getting more
benefits.
In this analysis of supply chain management, purchasing market and supplier
performance indicators are considered for the selection of best suppliers to get more
advantages and potential strategies are developed. This analysis demonstrates that Six
Sigma strategy can be successful in this decision process. Furthermore, this analysis
incorporates the strategic considerations of supplier selection rather than the more
traditional selection criteria. Moreover it is reliable for a variety of companies and
type of products. This report developed here provides a reliable assessment and
selection of potential suppliers and consent for the transferability among groups to
make progress as early validation results and customer reference shows promise of
proving for decision making process.
Due to involvement of various criteria it is complex progression to make any exact
decision. These criteria may depend on the type of product and the position of
organization. It also depends on whether it is a small or a big network of company.
Normally small companies pay less attention to supplier selection. Sometimes they
have good relations with supplier and they purchase goods/services only on the behalf
of their relations. It is a fast changing working environment and only a single
operation can seriously harm a company. We conduct an interview they were using
same strategy. Finally they realize that they should develop their purchasing
department with some strategic consideration in order to get best quality and to save
more money